Sign in
The UAE was second only to the United States as a destination for foreign investment in greenfields last year, with a 28% y-o-y increase in greenfield project announcements, according to a United Nations Conference on Trade and Development (Unctad) report (pdf). Foreign inflows into greenfield projects in Saudi Arabia also surged by 63% during the year.
Total FDI flows into the UAE reached USD 23 bn in 2023, Economy Minister Abdulla bin Touq Al Marri told Asharq Business (watch, runtime: 2:32) on the sidelines of the World Economic Forum.
Global FDI flows inched up 3% y-o-y to USD 1.37 tn in 2023, exceeding lower expectations earlier in the year due to concerns of an economic recession, according to the report.The increase “was due largely to higher values in a few European conduit economies; excluding these conduits, global FDI flows were 18% lower,” the report states, noting that higher interest rates and economic uncertainty hindered investments.
Looking ahead: A modest increase in FDI flows in 2024 is “possible,” with inflation and borrowing costs expected to stabilize, the report says. But geopolitical risks, high debt levels, and potential global economic fracturing could impact investments during the year, Unctad adds.
